The Secret of Direct Marketing

Everyone has come face-to-face with direct marketing. In fact, that’s what direct marketing is: it’s one-on-one marketing. Direct marketing uses several advertising forms to form an interactive relationship with consumers. If a direct marketing campaign works, consumers will purchase the product or service. Direct marketing may be so popular because, of all of the marketing strategies, it is the most personal and consumer oriented. It is part of the Integrated Communication Program, but its objectives, budgets and strategies are separate of the ICP.

Traditional direct marketing channels are catalogs, direct mail, direct response ads and telemarketing. To this emails and internet sales are added in the e-age. The growth of sales through direct marketing is more than the growth through any other media. The growth is due to many factors. Ever increasing number of market niches with distinct preferences. At home shopping is increasing due to higher time and cost (transport) involved in traditional marketing, parking problems, queues at check out counters. Efficient and quick express deliveries have added to the convenience of shopping from home.

The growth of computers, the Internet and customer databases have enabled sellers to target specific customers. It is more cost effective than using a sales force. Many websites describe the offerings, show pictures, list prices and have online ordering facilities.

Direct marketing benefits the customers in many ways. Time saving and hassle-free, comparative costs can be checked out, more options and merchandise is available. The seller also benefits as they save on sales force, there is no crowding in the shops, and infrastructure requirements are more controlled. The group specific mailing lists (for example new mothers, teachers, and doctors) help in personalizing the message and build an ongoing relationship with the targeted customers. The marketing can be timed to reach the prospects at the right time such as Christmas or Easter. As it is sent to prospects that were discovered to be more interested in the offering, direct response marketing has higher readership. It also can keep the competition guessing. It also can measure responses and align strategies to the most effective and important expectations.

Companies spend a great deal of time and money maintaining databases of present and prospective customers. A customer database contains current information about consumers but is much more than just contact information. Databases generally include buying preferences, purchase frequency and other such information. These databases are maintained and are used to generate leads and sales and to build a company-client relationship. The first customer databases were used by business markets and service companies. Today, customer databases are used by all companies whether they market services or packaged products. Most companies now realize how effective personalized marketing can be. It’s little wonder why a well maintained database can give a company the edge over the competition.

Companies use their databases in 4 ways. To identify prospects, to decide which customers should receive a particular offer, to deepen customer loyalty, and to reactivate customer purchases. It needs big investment and careful handling. Otherwise it may have adverse effect. Buyers may consider it invasion of privacy, but properly handled database utilization will give rich benefits.

About the author: Scott F. Geld is the CEO and President of Marketing Blaster, Inc., a pay-per-click traffic source that consistently beats the major search engines in conversion ratio and ROI.